Adidas is forecasting double-digit growth for the financial year as the German sportswear company recovers from the global pandemic and delivers a strong pipeline of products.
The shoe and apparel maker is expecting a favorable FY2022.
- Sales are projected to increase between 11% and 13%.
- Net income is projected to grow to between $2 billion and $2.1 billion.
- The company is planning a new share-buyback program of up to $1.7 billion from its sale of Reebok.
Adidas generated $23.3 billion in revenue in FY2021, a 15% increase compared to 2020. The company reported increased sales across all market segments in 2021 despite COVID-related restrictions, market difficulties in Asia, and industry-wide supply chain constraints.
The Germany-based company has faced challenges in China — the world’s largest fashion market — due to a partial boycott of Western brands in the country after questions were raised about forced labor in its Xinjiang region. In FY2022, Adidas projects sales in China to increase in the mid-single digits compared to 3% growth in the region last year.
Earlier this week, Adidas said it is temporarily shutting down operations in Russia and suspending online sales in the country in response to Russia’s recent invasion of Ukraine.
The company operates approximately 500 stores in Russia and is putting roughly $274 million of revenue — half its business from Russia and the CIS region — at risk due to the decision.